Custom Home Building 101
PLANS FOR YOUR NEW HOME.
If you do not have plans, we can assist you in planning your new home and working with an architect/designer to design and draft the plans. If you have already completed this, we would like for you to obtain all working drawings from your architect or designer and pass on a copy to us, the prospective builder.
PRELIMINARY BASIS.
For a small fee, usually less than 1%, of the anticipated cost of the project, we will initiate and develop the following:
- Develop a preliminary budget
- Create supplemental specifications
- Develop specific Scopes of Work for the tradesmen
- Provide estimating for all labor and materials
- Put the job out to bid
- Develop final Line Item Budget
- Provide a construction schedule
- Draw up final documents for your approval
Should you choose to hire South Coast Home Builders to build your new home, this small fee will be credited against the total contractor’s fee for building your new residence.
DEVELOP PRELIMINARY BUDGET.
Using our computer database of costs for a particular type of design, we will develop a detailed preliminary budget. This can be used for your initial meetings with financial institutions.
HIRE AN INTERIOR DESIGNER.
You will want to hire an interior designer whose style, tastes, and work are compatible with yours. Your interior designer will assist us in developing the supplemental specifications which will be used to develop our budget. Many HOA’s require exterior finishes and color selections before they will allow construction to begin. Although some designers may want to discuss the purchase of furniture and window coverings, insist they first concentrate on your finishes and color selections.
CREATE SUPPLEMENTAL SPECIFICATIONS.
In addition to what your architect has already specified, this is a comprehensive list of plumbing fixtures, doors and windows, roof tile, flooring, cabinets, countertops, appliances, stucco finish, and finishes, etc. Having this list completed before sending the plans out to bid is crucial to obtaining bids that are all bidding on the same items.
DEVELOP SCOPE OF WORK.
Before subcontractors and suppliers can provide accurate pricing, we need to let them know what we want them to include in their bid. This way everyone is bidding on the same item, i.e. Kohler- “Trieste” S.S. kitchen sink vs. Franke-GT kitchen sink or installing Deleo (2) piece mission roof tile vs. US Tile clay “S” roof tile.
ESTIMATING THE COSTS.
Using Microsoft’s Excel, we will estimate all labor and materials needed to complete your new residence. This is a very detailed and comprehensive spreadsheet that we will use to negotiate with subcontractors.
BIDDING THE JOB.
Depending on the type of contract, Cost Plus or Lump Sum, will determine to what extent items are put out to multiple subcontractors and suppliers for bids.
FINAL BUDGET DEVELOPMENT.
This is a detailed accounting of the costs associated with the various items in your home i.e. concrete foundation, framing labor and materials, roofing, stucco, etc. This document will later be incorporated into your construction contract. Your financial institution and their appraisers will also want to review this.
TYPES OF CONTRACTS.
- Cost Plus-Simply put, a Cost Plus contract is all the “actual” costs associated with the project plus a contractor’s fee to manage and supervise the construction of your new home. As the owner, you will be privy to all invoices and help decide which subcontractors and suppliers services or materials to use.
- Lump Sum-It is sometimes referred as a “Fixed Price” contract. Under this type of contract the builder will make all decisions with regard to costs and which subcontractors and suppliers to utilize.
FINANCING THE PROJECT.
If needed, your financial considerations should be addressed early on in the process. There are generally two ways to obtain financing. One method is to obtain an interim construction loan for the building of your new home. After completion, another lender will pay off the construction loan and this will become your permanent long-term mortgage. Another way of financing your new home, is to use ONE lender to do both, an interim construction loan that “rolls over” into a permanent loans once construction is completed.
DEVELOP A CONSTRUCTION SCHEDULE.
Utilizing Microsoft’s Project, we will create a Gant chart that lists all the various tasks needed to complete your new residence. The Gant chart also shows the critical path of the progression of work. This progress chart will also become part of your construction documents.
ACTUAL CONSTRUCTION.
This is the time you have been waiting for. You start seeing progress, the “bricks and sticks” are in the air so to speak. If all of the above items have been executed properly, this should be the easiest part for you. Our goal is to make this a fun, exciting, and rewarding experience for all of us involved. So, sit back, relax, and let your dreams appear right before your very eyes.
We hope this brief description of the construction process will give you some insight into the home building experience. If you have any other questions, please call us at (858) 967-1048
